Paymentech this weekend, unveiled the first proprietary gift card turnkey solution that integrates gift card transactions with credit card processing. The ‘Paymentech Gift Card’ allows restaurants to offer gift cards without using a third-party vendor. This program expands the market for proprietary stored-value cards by enabling restaurants to brand and launch their own gift cards. Paymentech clients select the card design, customizing the card with their name, logo and artwork. Restaurants can choose from different strategies on how to run their program. Gift cards can be pre-denominated with a specific amount on the card’s face. They can also be non-denominated so merchants, from the POS terminal, can add value to an account when it is sold to a customer. Value can be added and deducted from a gift card at each use. Merchants will also have the ability in the future to add loyalty programs and electronic coupons to their POS payment systems. Internet reporting is available to the merchant for tracking transaction activity and outstanding liabilities. Store level reports are available from the POS device to assist in daily reconciliation and monitoring of transactions.Details
VeriStar announces that it will work with Hypercom Corporation, a leading global provider of electronic payment solutions, to enable consumer payment authentication services and pay-by-touch at the point-of-sale.
Already handling traditional plastic cards, chip-based or smart cards, and paper checks, Hypercom(R) now looks to add biometrics as another voluntary method of consumer payment at the merchant countertop. Under the terms of the agreement, VeriStar and Hypercom will evaluate the benefits of developing an integrated “biometric acceptance infrastructure,” which will include multi-lane, government/EBT, wireless and stand-alone merchants in domestic and international markets.
! “VeriStar is proud to be working closely with a market leader like Hypercom. Retailers want to work with proven companies for payment acceptance and Hypercom’s ICE(TM) equipment and payment appliances are used by more than four million merchants worldwide,” said Phil Gioia, CEO of VeriStar Corporation. “The payment industry has long ago automated the authorization and settlement of transactions. Now the advantages of automating authentication and the voluntary option for consumers to pay their credit, debit and checking accounts without having to use plastic and paper is reaching the market.” “Hypercom historically is the leader in developing and introducing new relevant technologies, such as our Internet-enabled ICE terminals and graphical touch screens,” said Jairo E. Gonzalez, president, Hypercom Transaction Systems Group. “Being the first payment appliance company to help enable shoppers to pay at the point-of-sale without having to rely solely on paper or plastic affirms Hypercom’s commitment to securely enabling all payment types — using both traditional and emerging technologies. For retailers, they can better manage payment types, gain more transactions, speed checkthrough and help reduce fraud with very little infrastructure.”
In commenting about the viability of biometrics as a payment platform, Shalini Chowdhay, Auto ID Industry Analyst at Frost & Sullivan states, “Using biometrics as an alternate method for authentication for financial transactions is a brilliant idea. It is quick, convenient and above all, probably the safest. The payment industry is ready for a new mode of authentication, initial skepticism about biometrics has dissipated to a large extent, and biometric sensor technology has vastly improved — the timing is perfect.”
VeriStar’s fully voluntary service enables a cashless, checkless, cardless payment environment in which consumers will use their own unique physical characteristics to complete their daily payment transactions securely, conveniently, and efficiently. It also enables merchants to substantially reduce transaction-processing costs, and significantly mitigate the risk of fraud. VeriStar’s Internet address is [www.veristarcorp.com].
Hypercom Corporation (NYSE: HYC) is a leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants, and acquirers. Hypercom’s products include secure card payment terminals and web appliances, networking equipment, and software applications for e-commerce, m-commerce, smart cards, and traditional payment applications. Headquartered in Phoenix, Arizona, Hypercom maintains an installed base of more than 4 million card payment terminals, which operate seamlessly with the products of its Network Systems Division. These solutions are installed in over 100 countries and conduct more than 2.85 billion transactions annually. Hypercom’s Internet address is [www.hypercom.com]
NextCard’s 700,000+ cardholders continue to be active on line shoppers, making online purchases approximately five times more often than the average online credit card user. The ‘NextCard eCommerce Index’ for March shows that Amazon.com remained the No. 1 online merchant, followed closely by Half.com, EBay, Ubid.com and BarnesandNoble.com. New Top 30 e-commerce merchants for the month include Classmates.com, an online school reunion portal, and CitySpree.com, a regional auctions site. Equifax, which offers a suite of credit tracking services for consumers, came in as #28 on NextCard’s survey with a 20% gain in spending for March. The ‘NextCard eCommerce Index’ combines a large cardholder base of active online purchasers and data-mining technology that tracks online credit card transactions.Details
The Electronic Funds Transfer Association, the leading trade association for the electronic payments and commerce industries, announced a one-day special conference focusing exclusively on looming federal regulations that would require automatic-teller machine owners to provide ATMs capable of being operated by sight-impaired consumers.
The conference, “New ADA Challenges to the ATM Industry,” will be held June 27 at the Hilton Crystal City at Reagan National Airport in Arlington, Va. The federal Access Board, created by Congress to help develop accessibility guidelines for facilities covered by the Americans with Disabilities and the Architectural Barriers acts, is currently working with the financial industry and consumers on increasing accessibility by blind and visually impaired consumers to ATMs.
“The impact of requiring audio ATMs will affect not only sight-impaired consumers, but all consumers for many years to come,” said H. Kurt Helwig, EFTA executive director. “Ultimately, the requirements could reduce the number of ATMs available to all consumers, and increase the operating costs for those that remain.”
The conference will feature a variety of banking, technology, academic, consumer and manufacturing perspectives, said Helwig. Sessions will cover the challenges of audio ATMs, consumer perspectives, the technology of audio ATMs, the financial impact of complying with the audio ATM requirement, and a demonstration of audio ATM technology. A copy of the complete agenda may be found at the EFTA Web site, [www.efta.org].
EFTA has a history of working with the government and industry on ADA compliance issues, and views this as an extension of that effort, Helwig said.
About the Electronic Funds Transfer Association
The Electronic Funds Transfer Association is the nation’s leading inter-industry trade association dedicated to the advancement of electronic payments systems and commerce. Its members include financial institutions, ATM manufacturers, ATM owners and the nation’s shared ATM networks, as well as companies specializing in technology management, Internet commerce and data processing.
The five gaming properties of Wembley U.S.A., Inc., in Colorado and Rhode Island, and 14 other gaming properties recently signed contracts to utilize the technologically advanced products and services of Global Cash Access, a supplier of cash access, financial management and customer relationship marketing technologies to the gaming industry. Wembley U.S.A. has signed a five-year agreement to use several Global Cash Access products and services at the following properties:
— Arapahoe Park – Aurora, Colo.
— Havana Park Racetrack – Aurora, Colo.
— Lincoln Park – Lincoln, R.I.
— Mile High Greyhound Park – Commerce City, Colo.
— Pueblo Greyhound – Pueblo, Colo.
“Wembley’s decision to retain GCA’s suite of cash advance services was based on reliability and consistent service delivery,” said Skip Sherman, president of Wembley U.S.A. “GCA’s systems allow for a one vendor approach with the most experience and success in the cash advance business.” Other properties that recently signed agreements with GCA are:
— Atlantis Casino – Nassau, The Bahamas
— Bicycle Casino – Bell Gardens, Calif.
— Cascade Lanes & Casino – Renton, Wash.
— Claridge Casino Hotel – Atlantic City, N.J.
— Great Lakes Downs – Muskegon, Mich.
— Hotel and Casino del Rev – San Jose, Costa Rica
— Pahrump Nugget – Pahrump, Nev.
— Players Casino – Federal Way, Wash.
— Shodakai Coyote Valley Casino – Calpella, Calif.
— Speedway Casino – Las Vegas, Nev.
— Tailsman – Galveston, Texas
— Texas Treasure – Port Arkansas, Texas
— The Gambler – Reno, Nev.
— Turning Stone Casino Resort – Verona, N.Y.
Global Cash Access was formed in 1998 and is a joint venture of First Data Corp. and M&C International, Inc. Providing access to the gaming industry’s largest patron database, Global Cash Access uses Internet technologies to deliver funds transfer, financial management and customer relationship marketing services to more than 1,000 gaming properties nationwide. More information on the company is available at [www.globalcashaccess.com].
The NACHA ‘PAYMENTS 2001’ conference gets underway today in Washington. NACHA also reported today that there were almost 6.9 billion ACH payments worth more than $20.3 trillion last year. The organization released its ‘Top 50’ list of the largest originators of ACH payments for 2000. In its survey, NACHA counted all ACH-formatted transactions sent from a commercial financial institution to an ACH Operator and excluded on-us payments.
Top 5 Largest Originators of ACH Payments for Year 2000
Rank/Company Debits Credits Total Change
1 J.P. Morgan Chase 322,203,146 229,860,933 552,064,079 8.2%
2 Bank One 324,427,310 160,165,457 484,592,767 18.2%
3 Wells Fargo 115,341,294 346,023,882 461,365,176 14.1%
4 Bank of America 143,521,088 207,634,388 351,155,476 6.8%
5 First Union 61,589,721 149,151,233 210,740,954 11.0%
Precis Smart Card Systems Inc. reported the unaudited results of its first quarter of calendar year 2001.
For the quarter ended March 31, 2001, the company had net income of $129,343 on revenues of $2,354,159. Net income applicable to common stockholders was $69,343 or $0.02 per share. This compares to no revenue in the first quarter of the prior year and a net loss of $240,743 or a loss of $0.12 per share, for the same period last year.
The Company’s increase in revenues and earnings was attributable to its transition to a membership marketing company as a result of the merger- acquisition of Foresight, Inc. As previously reported, the Company has also entered into a definitive agreement to acquire The Capella Group, a healthcare solutions provider that markets a national healthcare membership program under the name Care Entree. The acquisition is contingent on shareholder approval.
Paul A. Kruger, Chairman of the Board of Precis commented, “The Foresight acquisition has been totally integrated into our operations, and we are pleased with our first quarter progress. The company is now well positioned to become a leader in the membership marketing industry. We look forward to completing The Capella Group acquisition and continued growth throughout the year.”
Precis is a national membership marketing solutions company. Through its wholly owned subsidiary, Foresight, Inc., the company provides product enhancements in the form of club benefits to financial institutions, rental purchase dealers, consumer finance companies, retail outlets, employee groups and member-based associations. For more information on Precis, its subsidiary Foresight, Inc., or Care Entree, visit [http://www.precis-scs.com], [http://www.foresightclub.com] and [http://www.careentree.com] respectively.
For the Three Months
Ended March 31,
Product and service revenues $ 2,354,159 $ —
Total operating expenses 2,215,569 258,822
Operating income (loss) 138,590 (258,822)
Other expense (income):
Interest income and expense (net) (62,222) (18,079)
Amortization of goodwill 44,954 —
Total other expense (income) (17,268) (18,079)
Income (loss) before income taxes 155,858 (240,743)
Provision for income taxes 26,515 —
Net income (loss) 129,343 (240,743)
Preferred stock dividends 60,000 —
Net income (loss) applicable
to common stockholders $ 69,343 $ (240,743)
Net income (loss) per share of common stock $ 0.02 $ (0.12)
Weighted average number of common
shares outstanding 2,850,000 1,967,000
ACE Cash Express, Inc., the nation’s largest check-cashing chain and a significant provider of related retail financial services, announced revenues of $60.2 million for its third fiscal quarter ended March 31, 2001, resulting in a diluted loss per share of $0.41. These results are in line with the Company’s anticipated operating results that were announced on April 5, 2001.
During the third quarter of fiscal 2001, total revenue increased 46 percent, to $60.2 million from $41.3 million in the third quarter of fiscal 2000. The Company reported a net loss of $4.2 million for the third quarter of fiscal 2001 as compared to a net profit of $5.2 million, for the third quarter of fiscal 2000. Earnings before interest, taxes, depreciation and amortization decreased 31 percent, to $8.9 million for the fiscal 2001 third quarter from $12.8 million for the fiscal 2000 third quarter. As previously announced, the quarterly net loss resulted from an increase in the Company’s loan loss provision on participations in Goleta National Bank (GNB) loans and the accelerated closing of approximately 84 underperforming stores. The Company increased its loan loss provision in the quarter by approximately $8.5 million and recorded $8.6 million of store closing expense that included costs associated with lease terminations, reduction of employees, write-offs for goodwill and disposal of certain fixed assets and inventory.
ACE’s core revenue categories showed continued growth in the fiscal 2001 third quarter compared to the fiscal 2000 third quarter. Check-cashing fees increased 24 percent, from $19.0 million to $23.6 million, and loan fees increased 280 percent, from $3.7 million to $14.0 million. Fees for cashing tax refund checks also increased 29 percent, from $10.1 million to $12.9 million during the third quarter of fiscal 2001. ACE opened 15 newly constructed company-owned stores and acquired 2 stores; also, 7 franchised locations were opened, and 4 stores were closed. The Company expects to close the 84 underperforming stores before fiscal year-end.
Jay B. Shipowitz, President and Chief Operating Officer, remarked, “As previously announced, the increase in our participation loan-loss provision reflects a higher rate of borrower default and a lower collection rate than we had anticipated. We believe improvements that have been made by ACE and Goleta will allow the product to achieve higher levels of profitability in the future. We also believe that the closing of the underperforming stores will allow our field personnel to focus on our more profitable stores and improve ACE’s profitability in future years.”
Three-Month Financial Highlights
(in thousands, except per share data)
Three Months Ended Fiscal 2001
March 31, from Fiscal 2000
2001 2000 $ %
Revenues $60,193 $41,337 $18,856 46%
Net income/(loss) $(4,155) $5,177 $(9,332) (180)%
Earnings before interest,
taxes, depreciation and
amortization $8,896 $12,829 $(3,933) (31)%
per share $(0.41) $0.50 $(0.91) (182)%
Nine Month Results
For the first nine months of fiscal 2001, total revenue increased 40 percent, to $145.5 million from $104.2 million for the first nine months of fiscal 2000. Because of the net loss in the third fiscal quarter, the Company reported a net loss of $772,000 for the first nine months of fiscal 2001 resulting in a diluted loss per share of $0.08, compared to net income of $7.6 million, (before the cumulative effect of the change in accounting) resulting in diluted earnings per share of $0.73, for the first nine months of fiscal 2000. Earnings before interest, taxes, depreciation and amortization grew 3 percent in the first nine months of fiscal 2001, to $25.1 million from $24.4 million for the first nine months of fiscal 2000. For the first nine months of fiscal 2001, same store sales increased by 22.8 percent, to $117.2 million from $95.5 million in the first nine months of fiscal 2000.
ACE opened 36 newly constructed company-owned stores, acquired 131 stores and opened 22 new franchised locations during the first nine months of fiscal 2001. ACE closed 14 stores during the first nine months of fiscal 2001; ACE expects to close the 84 underperforming stores before fiscal year-end.
“The tax season for the third quarter of this fiscal year resulted in a 28.5 percent increase in tax check fees over the third quarter of the last fiscal year,” said Donald H. Neustadt, chief executive officer of ACE. “As tax season ends, we plan to re-deploy 50 self-service machines from tax preparer locations to ACE stores. We believe that the self-service machines will improve customer service, making it faster and more convenient to cash checks.”
Nine-Month Financial Highlights
(in thousands, except per share data)
Nine Months Ended Fiscal 2001
March 31, from Fiscal 2000
2001 2000 $ %
Revenues $145,531 $104,209 $41,322 40%
Net income/(loss) $(772) $7,604 * $(8,376) (110)%
Earnings before interest,
taxes, depreciation and
amortization $25,075 $24,385 * $690 3%
per share $(0.08) $0.73 * $(0.81) (111)%
* Before cumulative effect of change in accounting
Business Outlook for the Remainder of Fiscal 2001 and for Fiscal 2002
The statements made below (preceded by bullet points) are the Company’s outlook or forecast for the Company’s business for the remainder of the fiscal year ending June 30, 2001 and for the fiscal year ending June 30, 2002. These statements are made only as of April 20, 2001 and indicate only the expectations of the Company’s management as of that date. These statements supersede any and all previous statements made by the Company regarding the matters addressed. These statements are “forward-looking statements” which, as indicated in greater detail below under “Forward-looking Statements,” cannot be guaranteed and may turn out to be wrong.
The statements made below are based on various assumptions made after the nine months ended March 31, 2001, which include, but are not limited to the following: (1) the expected closing of 84 underperforming stores in the fourth quarter of fiscal 2001, the opening of an additional 50 newly- constructed stores in fiscal 2002, the closure of 10 stores during the normal course of business in fiscal 2002, but no other increase or decrease in the number of the Company’s owned stores (whether by acquisition or otherwise); (2) the face amount of the average check cashed being approximately $326; (3) the face amount of the average money order sold being approximately $132; (4) no material change in the effective interest rate on all money borrowed by the Company; (5) no material change in the nature or terms, or the procedure for the Company’s offering and selling at its locations, any third-party product or service offered at the Company’s locations.
— The number of checks cashed (excluding tax checks), which was 9.2 million in the first nine months of fiscal 2001, is expected to reach a total of between 12.3 and 12.4 million in all of fiscal 2001 and between 13.0 and 13.3 million in all of fiscal 2002. This assumed number for all of fiscal 2001 would be a 12 to 13 percent increase over the number of checks cashed in all of fiscal year 2000 and would result in check fees (excluding tax checks) of between $90 and $91 million for fiscal 2001. This assumed number for fiscal 2002 would be a 5 to 7 percent increase over the anticipated number of checks cashed in the fiscal year 2001 and would result in check fees (excluding tax checks) of between $97 and $99 million in fiscal 2002.
— The impact of the Company’s business of cashing tax refund checks and refund anticipation loan checks is continuing to be primarily in the third and fourth quarters of the Company’s fiscal year. The number of tax checks in the first nine months of fiscal 2001 was 320,000 and is estimated to be an additional 100,000 in the fourth quarter of fiscal 2001. The estimated total number of 420,000 tax checks cashed in all of fiscal 2001 would result in estimated tax fees of $15.0 to $15.1 million. The number of tax checks is expected to reach between 420,000 and 430,000 in all of fiscal 2002, which would result in tax fees of between $14.9 and $15.3 million.
— The number of Goleta National Bank (GNB) loan transactions in which participations are purchased is expected to reach between 1.5 and 1.6 million in all of fiscal 2002 compared to approximately 1.3 million such loan transactions in all of fiscal 2001. This number would result in between $59 and $61 million in loan interest from loan participations in fiscal 2002, compared to approximately $53 million in loan interest from loan participations in all of fiscal 2001.
— Revenue from bill-payment fees, which was $7.5 million in the first nine months of fiscal 2001, is expected to be between $10.8 and $11.2 million in all of fiscal 2002, compared to an estimated $10.2 million in all of fiscal 2001.
— Same store sales, which was 22.8 percent in the first nine months of fiscal 2001, is expected to increase between 7 and 8 percent in all of fiscal 2002.
— The Company which reported total revenue of $145.5 million in the first nine months of fiscal 2001, expects its total revenue for all of fiscal 2002 to range between $210 and $215 million, which would be an 8 to 11 percent increase from the Company’s estimated fiscal 2001 total revenue of approximately $195 million.
— The Company’s gross margin percentage, which was 26.6 percent in the first nine months of fiscal 2001, expects gross margin percentage for all of fiscal 2002 to be approximately 32 to 33 percent compared to approximately 27 percent for all of fiscal 2001.
— Region, headquarters, and franchise expenses, for the first nine months of fiscal 2001 were $18.8 million. In all of fiscal 2002, these same expenses are expected to range from 13.3 to 13.5 percent of revenue for fiscal 2002, compared to an estimated 13 percent of revenue for all of fiscal 2001.
— The Company’s interest expense for the first nine months of fiscal 2001 was $9.0 million. The Company expects its interest expense for all of fiscal 2002 to be approximately $12.5 million, which would be an increase of 3 percent over the estimated interest expense of $12.2 million for all of fiscal 2001; the increase would be due to estimated slightly higher effective interest rates offset in part by estimated lower average borrowings.
— Regarding participations purchased in GNB loans, small consumer loan losses, as a percentage of total revenue, which was 12.6 percent in the first nine months of fiscal 2001, are expected to range between 10.7 and 10.9 percent in all of fiscal 2002 compared to an expected 12.1 percent in all of fiscal 2001.
— Returned checks, net of collections and cash shortages, as a percentage of total revenue, which was 6.5 percent in the first nine months of fiscal 2001, is expected to range between 5.2 and 5.5 percent in all of fiscal 2002, compared to an estimated 6.2 percent in all of fiscal 2001.
— The effective tax rate for all of fiscal 2002 is expected to be approximately 40 percent, substantially the same as the effective rate for all of fiscal 2001.
— The Company, whose center-level depreciation was $5.0 million in the first nine months of fiscal 2001, expects center-level depreciation to be approximately $6.7 million for all of fiscal 2002, an increase of 2 percent over the estimated depreciation for fiscal 2001 of $6.6 million.
— The Company, whose amortization of goodwill and other acquisition- related intangibles was $3.7 million in the first nine months of fiscal 2001, expects amortization of goodwill and other acquisition- related intangibles and costs to be approximately $6.0 million for fiscal 2002, an increase of 18 percent over the amortization for fiscal 2001 due to acquisitions during the first nine months of fiscal 2001.
— Diluted loss per share for the first nine months of fiscal 2001 was $0.08. The Company expects diluted earnings per share for fiscal 2002 to range between $1.30 and $1.36, compared an anticipated diluted earnings per share range of $0.03 to $0.05 for all of fiscal 2001.
— The Company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first nine months of fiscal 2001 was $25.1 million. The Company expects EBITDA in all of fiscal 2002 to be between $45 and $47 million, a 34 to 40 percent increase over the estimated fiscal 2001 EBITDA of approximately $33.5 million.
About the Company
ACE Cash Express, Inc. is headquartered in Irving, Texas and is the largest owner, operator and franchiser of check-cashing stores in the United States. Founded in 1968, the company has a total network of 1,153 stores, consisting of 983 company-owned stores and 170 franchised stores in 34 states and the District of Columbia. ACE also maintains automatic check-cashing machines, which provide financial services without the need for a service associate, at 71 locations. ACE offers a broad range of financial and check- cashing services and is one of the largest providers of MoneyGram wire transfer transactions. In addition, ACE offers money orders, bill payment services, and prepaid local and long distance telecommunication services. Under ACE’s agreement with Goleta National Bank (GNB), GNB currently makes small consumer loans available to customers at various ACE company-owned stores. The company’s website is found at http://www.acecashexpress.com.
For complete details on ACE’s lastest earnings report visit CardData ([www.carddata.com]).
Seven of the top ten U.S. issuers reported higher delinquency for the first quarter, however, when it comes to chargeoffs, it is split right down the middle. Based on data collected by CardData, the average chargeoff rate among the top ten issuers for 1Q/01 is 5.14% compared to 5.11% one year ago. Capital One and Household are the only two top issuers reporting lower delinquency numbers. (Bank of America has not released delinquency data.) Bank of America reported the most dramatic drop in chargeoffs thanks to sharply rising outstandings. Other issuers posting lower chargeoffs include Chase, Cap One, Household, and Fleet. For compete portfolio data on 1Q/01 see CardData ([www.carddata.com]).
TOP TEN U.S. ISSUERS
First Quarter Performance
ISSUER DELINQUENCY CHARGEOFFS
2001 2000 2001 2000
1. Citibank* 2.00% 1.65% 4.84% 4.65%
2. MBNA 4.60% 4.35% 4.35% 4.06%
3. First USA 4.33% 4.08% 5.81% 5.78%
4. Discover 6.34% 5.58% 4.79% 4.66%
5. Chase* 1.99% 1.76% 5.05% 5.39%
6. Providian 7.64% 5.72% 9.34% 7.18%
7. Bank of America NA 4.37% 5.43%
8. Capital One 4.72% 5.26% 3.75% 3.87%
9. Household* 4.25% 4.43% 3.56% 4.00%
10. Fleet 4.75% 4.30% 5.55% 6.11%
* Citibank and Chase reported 90 day delinquency; Household reports 60 day delinquency.
Source: CardData (www.carddata.com)
Thanks to higher credit card outstandings Bank of America’s chargeoffs fell during the first quarter compared to one year ago. BofA reported $23.2 billion in first quarter outstandings compared to $22.8 billion for 4Q/00 and $19.1 billion for 1Q/00. Chargeoffs fell from 5.43% for 1Q/00 to 4.37% for first quarter 2001. Fourth quarter chargeoffs were 4.31%. Card fee revenue rose 18%, reflecting increased purchase volume as well as the continued sharp rise in debit card usage. BofA also reported a $140 million gain from the sale of an interest in the Star ATM network. The yield on BofA’s card portfolio slipped a bit from 12.43% for 4Q/00 to 12.41% for the first quarter. For complete details on BofA’s 1Q/01 results visit CardData ([www.carddata.com]).
Fundtech Ltd., a leading provider of e-payments and Internet banking solutions, announced today that UMB Financial Corporation will implement Fundtech’s PAYplus electronic payments solution. UMB will use PAYplus to process approximately 15,000 payments per day on behalf of its 170 banking centers in Missouri, Illinois, Colorado, Kansas, Oklahoma and Nebraska serving a commercial, retail and mutual fund customer base.
PAYplus is an easy-to-use, end-to-end payment system that allows banks to seamlessly process e-payments within the bank for domestic and international payment initiation, clearance and settlement. This solution seamlessly integrates with a bank’s back office, streamlining manual processes and increasing straight-through information processing, including messaging, funds transfer, scheduled reporting, confirmations and audit controls. PAYplus uses open technologies, making it cost-effective to support and maintain. It is platform- and server-independent and can run on both the Windows NT and UNIX operating systems. In addition, PAYplus can run on SQL Server or Oracle database platforms.
James Rundberg, senior vice president, UMB Financial Corporation, said, “Flexibility was the key to our selection of PAYplus. The system’s open architecture and industry standard technologies make it easy for us to integrate PAYplus into our existing infrastructure. And, its rules-based configuration tools will allow us to customize it for UMB’s unique payments processing environment.” Reuven Ben-Menachem, chairman and chief executive officer, Fundtech, said, “We are delighted that UMB has selected our PAYplus solution to replace its current payments system. Fundtech has invested significantly in PAYplus to provide the high performance, scalability and flexibility financial institutions need in today’s growing, dynamic e-payments business. We will continue to invest in PAYplus to meet our customers’ e-payments needs both now and in the future.”
About UMB Financial Corporation
UMB Financial Corporation ([www.umb.com]) is a multi-bank holding company headquartered in Kansas City, Mo., offering complete banking and related financial services to both individual and business customers. With $7.3 billion in average assets, the company owns and operates 170 banking centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma and Nebraska. Subsidiaries of the holding company and the lead bank, UMB Bank, n.a., include a trust management company in South Dakota and single-purpose companies that deal with brokerage services, consulting services, leasing, venture capital and insurance.
Fundtech ([www.fundtech.com]) is a leading provider of software solutions and services that facilitate e-payments and e-banking by enabling businesses through their banks to electronically manage cash, process payments and transfer funds. The Company’s client-server and Internet software products and services automate the process of transferring funds among corporations, banks and clearance systems and enable businesses to manage global cash positions efficiently and in real-time. Its solutions have been sold to more than 700 financial institutions around the globe.
Bank of America announced yesterday that Bond Isaacson will take over as Payments executive for its Card Services division. Isaacson began working for VISA in March 1999 as EVP of Member and Merchant Sales and as president of e-VISA. At VISA he was responsible for all e-commerce business and strategy. At BofA, Isaacson will be responsible for all electronic payments solutions and will take charge of strategic development, executing tactical design and implementing initiatives that will promote new forms of electronic payments. Bank of America is the number one issuer of debit cards, the number one deployer of ATMs and the seventh largest bank issuer of credit cards, based on outstandings, in the U.S. It also has more than 3 million online customers. Prior to joining VISA, Isaacson worked for 19 years at IBM. As an IBM financial services marketing executive, Isaacson previously directed IBM’s sales and IT-implementation efforts for the retail and global-finance business units of Bank of America. He also worked with the bank-holding company (formerly NationsBanc) to negotiate the formation of the Integrion Financial Network.Details